Baozun Has Rallied More Than Alibaba; Has Another 10% Upside

Chinese e-commerce play Baozun (BZUN) has outperformed Alibaba (BABA) with a 139% rally this year and Credit Suisse reckons there could be another 10% upside.

The broker raised its price target on Baozun, which helps companies execute their e-commerce strategies, to $32 a share from $23 a share. The stock has endured volatile trading this week following the release of its second quarter earnings: The stock slumped 24% on Tuesday and then rallied 10% on Wednesday.

Credit Suisse likes the company's moves to optimize revenue by shifting away from a distribution model to a consignment/service fee model.

We believe the optimisation efforts will continue to eliminate inventory risk and enhance margin profile, while accelerating technology investment should strengthen leadership position and bring broader value proposition to brands over long run.

Credit Suisse rates the stock as an outperform. The stock, which closed at $28.90 a share on Wednesday, is up 139% this year compared to a 100% advance for Alibaba.

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Baozun Has Rallied More Than Alibaba; Has Another 10% Upside

Chinese e-commerce play Baozun (BZUN) has outperformed Alibaba (BABA) with a 139% rally this year and Credit Suisse reckons there could be another 10% upside.

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